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Section 25 Company

Section 25 Company in India: Set up a Not-for-Profit via jjassociatez

 

Start a Section 25 Company or a Not-for-Profit Company

If your company is promoting commerce, art, science, religion, charity or any other useful object, and the profits go to the promotion of the objectives of the company, you may get is registered as a section 25 company.

Such a company is also called a not-for-profit company. These is because the profits have to be invested back to the objective the company is pursuing.

Why should you get yourself registered as a Section 25 Company

A non-profit organisation in India can be registered as one of the following:

  • Trusts

  • Societies

  • Section 25 company

Trusts and Societies have different laws for different states and thus can prove to be slightly problematic.

A Section 25 Company is governed by a central law, the Companies Act of 1956 are thus are organizationally stronger.

Most of the ‘foundations’, ‘clubs’,  ‘welfare foundations’ etc. are formed as a Section 25 Company.

However the formation of a Section 25 Company is a complex procedure and if you want  to register your organisation quickly, you may want to register yourself as a Trust or a Society.

A list of section 25 companies is on the Ministry of Corporate Affairs website here.